Saudi shares fell for a fourth consecutive session, their longest losing streak since June, weighed mainly by petrochemicals and banking stocks, following drops in oil prices and global stocks amid the euro area's deepening debt crisis. Stock benchmark Tadawul All Share Index closed 0.34 percent lower to close Saturday at 6,198.87 points – the steepest drop since Nov. 1. The gauge extended losses for a fourth day, the most since the five-day stretch that ended on June 20. “The Saudi market is reacting to deteriorating economic outlook in Europe,” said Asim Bukhtiar, an equity analyst at Riyad Capital. “The debt crisis appears to be spreading rather than containing, but the key issue is the lack of clear direction which has left confidence in limbo.” “Trading activity appears to be headlines-driven more so than fundamentals,” said Bukhtiar. “Uncertainty has increased volatility.” The petrochemicals sector index lost 0.8 percent as heavyweight Saudi Basic Industries Corp. (SABIC) closed 0.8 percent lower. The banking sector index ended 0.8 percent lower. Samba Financial Group dropped 1.7 percent and Al Rajhi Bank slipped 0.7 percent. Oil fell Friday as a bout of profit-taking following big moves in spreads this week overtook early euro zone optimism. New York and London oil prices dropped ahead of the weekend as Europe's leaders appeared at odds over their crisis and key US debt reduction talks looked headed for a deadlock. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for December delivery lost $1.41 to close at $97.41. In London the benchmark Brent North Sea crude for January delivery gave up 66 cents to $107.56 a barrel. “The Saudi market is reacting to deteriorating economic outlook in Europe,” said Asim Bukhtiar, an equity analyst at Riyad Capital. “The debt crisis appears to be spreading rather than containing, but the key issue is the lack of clear direction which has left confidence in limbo.” The S&P 500 dropped 3.8 percent, the most since the week ended Sept. 23, the Dow Jones Industrial Average fell 2.9 percent and the benchmark Stoxx Europe 600 Index declined by 3.7 percent.
